Help to Buy ISA guide

Rich2808

torncurtain wrote: »

As long as they don't go over their allowed amount of total savings while on this benefit, I think you're correct. At least this is what I understand. My family member asked the DWP, they didn't provide a clear answer. They said they didn't think it would be a problem but that they didn't know, which isn't helpful.

I believe on income related ESA a working age person can have £6,000 in savings before the benefit is scaled back with full loss of benefit once savings exceed £16,000.

Even if you paid in the maximum allowed at the start and per month it would take over two years to reach a balance of £6,000.

Of course unless the person is buying in a cheaper part of the UK its hard to see how you could buy a home except with shared ownership with a deposit of less than £16,000? So a bit catch 22.

eskbanker

torncurtain wrote: »

As long as they don't go over their allowed amount of total savings while on this benefit, I think you're correct. At least this is what I understand. My family member asked the DWP, they didn't provide a clear answer. They said they didn't think it would be a problem but that they didn't know, which isn't helpful.

Just to be clear here, you're moving the goalposts from the question I answered!

You asked

Who can/can't apply for a Help to Buy ISA? My family member is in receipt of ESA (old version not new-style, old version being means-tested) but would only be contributing a very small monthly amount. Are they allowed to get a Help to Buy ISA?

to which the answer is yes, subject to the generic criteria in the earlier post.

The issue of whether someone can continue to receive all or some of their benefits if holding substantial savings is a different question, and the actual location of those savings is irrelevant....

torncurtain

Rich2808: Agreed re catch 22. From his perspective he thinks that if he's able to return to work, he could contribute to it until the 2030 mark and hopefully find a property. I can't advise him very well, as I'm no expert, obviously. Thanks for your answer.

eskbanker: I see, I should have been clearer. My thinking was that some people would be restricted from applying (those on specific benefits) or that it could jeopardise their benefits even if there weren't explicit restrictions for applying. Goalposts returned to initial position! You answered me, thanks.

efisher

Hello,

I have subscribed to a cash ISA in the current tax year and since closed that account, everything was transferred t my current account. Am I still able to open a Help to Buy ISA? As the H2B states that ISAs subscribed to this tax year must be transferred to the H2B, but I am unable to do this with the closed account.

Thanks!

eskbanker

efisher wrote: »

I have subscribed to a cash ISA in the current tax year and since closed that account, everything was transferred t my current account. Am I still able to open a Help to Buy ISA? As the H2B states that ISAs subscribed to this tax year must be transferred to the H2B, but I am unable to do this with the closed account.

Assuming you didn't use up your entire £20K annual allowance with the first one, you can still open a second cash ISA (such as a HTB ISA) under the self-transfer rules explained at https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager#repair-void (section on 'investor error ISA self-transfer') and the first example at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/695897/worked_examples_of_repairs_and_voiding.pdf

tommyh112

I have been doing research lately and cant decide what option would be best for me. My girlfriend and I are looking at buying our first house in 2 years time and are starting to really invest in savings for a deposit. My girlfriend has recently opened a help to buy ISA but as I have savings Im not sure whether to open a help to buy as it is a slower process or a lifetime ISA that I can invest more savings in straight away. Will we be able to get the bonus' from her HTB and my lifetime ISA (if thats what I open) when we purchase the house or does it have to be both HTB's? thank you.

eskbanker

A couple buying their first property can mix and match, i.e. one uses LISA and the other HTB ISA, both with bonuses, as long as the purchase complies with the requirements of both schemes.

masonic

tommyh112 wrote: »

I have been doing research lately and cant decide what option would be best for me. My girlfriend and I are looking at buying our first house in 2 years time and are starting to really invest in savings for a deposit. My girlfriend has recently opened a help to buy ISA but as I have savings Im not sure whether to open a help to buy as it is a slower process or a lifetime ISA that I can invest more savings in straight away. Will we be able to get the bonus' from her HTB and my lifetime ISA (if thats what I open) when we purchase the house or does it have to be both HTB's? thank you.

You can put £4000 per tax year into a LISA, compared with an initial £1000 then £2400 per tax year for a HTB ISA, so you will be able save more with a LISA.

Thinking of you individually, if you want to use a LISA, that doesn't prohibit you from saving into a HTB ISA as well, but you wouldn't be able to claim the bonus, only benefit from the interest rate.

The two of you don't have to use the same product for the house purchase, but if one uses a HTB ISA and the other uses a LISA, then you'll need to meet the conditions of both products.

Ewan7750

Hi everyone looking for some help/advice.

I am currently serving in the armed forces and I'm 20,I am married and want to start looking into saving for a mortgage so we have somewhere to live when I leave (not for a few years yet).

We are both first time buyers and would like to know how and with who to save a deposit.I have read the article regarding help to buy ISAs however I'm still left confused.

Any advice on help to buy ISAs, lifetime ISAs, help to buy loans from the government (or the armed forces help to buy if anyone is in the know). Realistically we would like to look at buying a house within the next 2-3 years so we can rent it out whilst I'm still serving (in order to get it payed off quicker)

Thanks in advance
Ewan

masonic

Ewan7750 wrote: »

Realistically we would like to look at buying a house within the next 2-3 years so we can rent it out whilst I'm still serving (in order to get it payed off quicker)

That would disqualify you from both the HTB ISA and Lifetime ISA schemes, so perhaps the armed forces scheme is your best bet, if it allows you to initially purchase as a buy to let.